Foord International Feeder Fund
CLOSED TO NEW INVESTMENT
For conservative, absolute return-oriented investors in global markets
The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Requiring diversification through investments not available in South Africa
• Seeking to hedge rand depreciation.
|Year||Fund Return %||Benchmark Return %||SA Inflation %|
|2006 (from 01/Mar)||24.9||28.4||5.0|
|2020 (to 30/Sep)||17.1||22.2||2.6|
To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.
Longer than three years.
1 March 2006
R50 000 lump sum or R1 000 per month
The portfolio may only invest in cash and one other collective investment scheme.
The Foord International Fund, in which the fund invests, does not distribute its income.
Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.
Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.
|Risk of loss||
Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.
|Security description||Asset class||Market||Portfolio weight %|
|ETFS Physical Gold||Commodity||GB||7.9|
|Nagacorp 9.375% 21/05/2021||Bond||SG||6.1|
|US Treasury 2.75% 30/11/2020||Bond||US||4.6|
|Roche Holding AG||Equity||CH||4.6|
|Wheaton Precious Metals Corp||Equity||US||4.5|
|CVS Health Corp||Equity||US||3.8|
Monthly Commentary – September 2020
- Developed market equities (-3.4%) retraced from a five-month rally that had been ignited by a robust recovery in many high frequency economic indicators—on worries that high unemployment levels and expiring stimulus measures could weight on growth
- Global developed market sovereign bond yields fell modestly—at its mid-month meeting the US Federal Reserve signalled continued dovishness with no rate hikes expected until 2023
- The US dollar strengthened against the euro (-1.9%) and British pound (-3.4%)—the risk off sentiment bolstered the US dollar and Japanese yen (+0.5%), both viewed as safe-haven currencies
- After months of sizeable gains, precious metals including silver (-13.3%) and gold (-4.1%) retreated—while concerns about the sustainability of any rebound in demand and dearth of travel weighed on the oil price (-9.6%)
- The fund’s holding in leading gold and silver streamer Wheaton Precious Metals (-8.1%) and ETFS physical gold (-3.6%) detracted from performance on precious metals weakness—the S&P 500 hedges contributed the most to performance as that index fell
- The managers favour equities but continue to employ the fund’s S&P 500 hedges to mitigate risk and dampen probable volatility—the imminent US elections, increasing geopolitical tensions and early indications of rising COVID-19 infection rates in the US and Europe could each materially weigh on markets
- The rand (+1.1% vs the US dollar) gained materially against the dollar but lost ground latterly—on risk off sentiment as fears of renewed European COVID-19 lockdowns mounted
The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.
WHAT IF YOU HAD INVESTED WITH US IN THE PAST?
Experience the compounding phenomenon of a sustained, long-term investment with Foord.